The Development and Trends of E-commerce in Vietnam: Choosing the Right Platform for Your Business

29 March, 2024 by
The Development and Trends of E-commerce in Vietnam: Choosing the Right Platform for Your Business
Lameco JSC

Overview of Southeast Asian E-commerce

Amidst rapidly growing e-commerce in developed nations, Southeast Asian e-commerce is just entering a new phase post-COVID-19 pandemic. Southeast Asian countries started adapting and exploring e-commerce since 2010. According to statistics, from 2016 to 2021, the total revenue from e-commerce grew fivefold, amounting to a 40% annual growth rate. The proportion of sales through e-commerce in the total retail revenue increased from 5% to 20%.

According to McKinsey using China as a reference point, the Southeast Asian market may witness strong growth from 15% to 25% in the coming year. By 2026, the Southeast Asian market is expected to triple with a compound growth rate of 22%, reaching approximately 230 billion USD in total merchandise volume.

E-commerce Market in Vietnam — Diversifying Digital Channels

Vietnam — the star of Southeast Asia in both economic growth and digital transformation — reached 14 billion USD in the e-commerce market in 2022 and is expected to achieve up to 32 billion USD by 2025. Vietnam is the only country in Southeast Asia projected to have a growth of over 30% across all e-commerce categories from 2021 to 2025. The strategy of the government is to increase the population's e-commerce usage rate to 55% by 2025 and boost the average e-commerce spending per capita to about 600 USD/year.

Unlike some developed countries like the USA where Amazon holds 40% of the market share, Vietnam shows a diversification trend in digital channels. We categorize it into 2 types of e-commerce: the first is traditional e-commerce like Shopee, Lazada, Tiki, and the second is social commerce with the emergence of the TikTok Shop.

Customers will shop through more digital channels. Learning from China, many businesses may set up their own B2C online sales channels to directly connect with Vietnamese customers through e-commerce platforms such as Shopee, Lazada, TikTok Shop, Tiki, and Sendo. According to metrics from Metric on the 2022 e-commerce market, Shopee is the most popular e-commerce platform in Vietnam, accounting for nearly 73% of the total revenue of the remaining platforms in the market, equivalent to about 91 trillion VND. Lazada is in second place, holding 20% with revenue of 26.5 trillion VND.

Notable in this ranking is the TikTok Shop. Although only launched at the end of April 2022, TikTok Shop has surpassed Tiki and reached the top 3 of the 2022 rankings with a total score of 13.56. However, the total scores of TikTok Shop and Tiki do not vary significantly, approximately 0.33 points. According to Metric, TikTok Shop's monthly revenue now equals 80% of Lazada's in the same period and is 4 times higher than Tiki's. Sendo is too small and has been declining monthly; they cannot compete with the giant platforms with large capital and resources.

Shopee — The Market Leader

Also, according to Metric, the top 3 best-selling product categories on Shopee in 2022 are cosmetics, women's fashion, and home & living.

Many businesses — from clothing brands to consumer electronics businesses — have leveraged introducing their products to the female customer segment on Shopee, especially with low prices. But this doesn't mean Shopee is only suited for cheap and unbranded products as Shopee Mall accounts for 59.22% of Shopee's total revenue. Shopee's best-selling product may be items under 100k VND, but the best-performing products are from well-known brands with a price range exceeding 300k VND on Shopee Mall stores.

Lazada — The Challenger

Unlike Shopee, the top 3 highest revenue categories on Lazada are home & living, health & beauty, TV & home appliances. Based on the Lazada Seller Center, the total number of SKUs in the two categories: home & living, health & beauty shows a significant impact with over 35k SKUs for each category and double the third category being consumer electronics.


E-commerce is becoming an undeniable part of Vietnam's economy. For businesses looking to expand their online operations, choosing the right platform is a crucial factor for success.

Platforms like Shopee and Lazada each have their strengths and weaknesses. Shopee has an advantage in cosmetics and women's fashion, while Lazada is strong in home & living, health & beauty. Businesses need to closely consider these factors when selecting their e-commerce platform.

At Lameco, we have a team of experts with vast experience in helping businesses shape and execute their e-commerce strategies. We provide customized solutions based on the specific needs of a business, from building online stores to optimizing operations on major e-commerce platforms. Contact us today to learn how Lameco can help your business take advantage of e-commerce.

Share this post